'An employee's market'

New business leading some companies to study, determine competitive starting wages

New business leading some companies to study, determine competitive starting wages

July 20, 2008|By James Kruger, jkruger@aberdeennews.com

It's a great time to be unemployed in Aberdeen, or even employed for that matter. With new businesses coming to the community, more opportunities and better wages are moving in as well, said Dan Thielsen, manager of the Aberdeen Career Center with the South Dakota Department of Labor. "This is an employee's market, right now," he said. "If you are a decent worker, there's a lot of good opportunities for you." The Career Center has more than 500 open positions listed for Aberdeen and surrounding communities, with starting wages ranging from $5.85 per hour - the current minimum wage - for a hostess to approximately $35 per hour for a pharmacist, Thielsen said. The additions of Molded Fiber Glass and Northern Beef Packers, however, will bring an estimated 1,300 to 1,400 new jobs with competitive wages starting at $11 an hour, depending on the position, he added. While that means those seeking jobs could be in luck, it could also mean companies with low starting wages might be out of it when it comes to finding quality employees. "You are going to start seeing competitiveness in wages," Thielsen said. "I think some (businesses) are going to have to relook at their wage scale if they're having trouble finding people or retaining employees because their wages might be too low." Julie Johnson, executive director of Absolutely! Aberdeen, a local initiative to grow Aberdeen and surrounding communities, said she hopes that wages will increase because it would be great for the area. "Rising tides rise all boats," she said. "And I think that's the best you could hope for." The average wage for Brown County is $15.23 per hour, according to the Department of Labor. Midstates Printing, a company employing about 300 people in Aberdeen, is considering restructuring its wages for employees to retain them, Bob Grant Jr., a recruiter with the company, said. The company hires at $9 an hour for entry level positions, but Grant said there is discussion on whether to increase the starting wage and make raises more frequent. Grant said Midstates attempts to make its environment for employees as comfortable as possible, but with all the new businesses moving in, retaining employees is something he does worry about. "I'd lie to you if I said I didn't," he said. For some, the company's atmosphere is paying off. Thomas Borge has been a technician at Midstates printing for six years and said he is happy with the company. "They treat me really well," he said. "They really work with you." Some Aberdeen companies already study trends and wages around the community to determine a competitive starting wage. "If we sit back and don't adjust our starting wage or look at key positions we need to hire, we'll miss the boat," Wal-Mart Supercenter Manager Brian Bjordal said, adding that it can sometimes be challenging to find the right people for open positions. Bjordal said Wal-Mart continually assesses what its competitors' wages are and adjusts its own accordingly. And he said Aberdeen's Wal-Mart has raised its starting wage numerous times in the last few years based upon the local job market. Even businesses in the fast-food industry are looking at wages to keep up with competition, including Taco Bell, said manager Brian Marcuson. He added the starting wage at Taco Bell in Aberdeen is about $7 an hour and hiring occurs year-round. "It's pretty much on a constant basis," he said. "It doesn't really stop." The average wage for eastern South Dakota for fast-food workers is $7.32 an hour, which is a little below the state average of $7.56, according to statistics from the Department of Labor. Higher wages in the area could mean companies seeing their employees leaving for higher-paying work, Thielsen said. Many of the people who will fill the open positions are what the Department of Labor classifies as "underemployed," he said, or underpaid workers willing to make the move to another job. And many of the jobs that are currently available or will be available do not require more than a high-school diploma or GED, allowing for more potential applicants to choose from. Because Brown County boasts a 2.1 percent unemployment rate, almost half of the national rate of 4 percent, there is even more likelihood many job openings will be filled not by those in need of a job, but by those seeking a better job, Thielsen said. "For the first time in a long time for people, there is a lot of opportunity here," said Bernie Harrington, the owner and manager of Express Employment Professionals, a staffing company that specializes in placing people in employment. "The selection, to me, is fantastic. It's a good time to be here." And people are getting that message. Those at Absolutely! Aberdeen hear a lot of stories of people moving into the area or moving back, Johnson said. Many communities that grow have initial difficulty filling positions and people can be expected to move into the area, she added. Harrington agreed. "It's kind of like the 'Field of Dreams': If you build it, they will come," he said. American News Photo by Dawn Dietrich-Sahli Hard at work: Thomas Borge, a technician at Midstates Printing, looks over a label this past week at the company in Aberdeen. Inside Minimum wage going up this week to $6.55. Page 6A